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THE Ministry of Finance (MOF) has taken a significant step towards bolstering consumer protection with the formal enforcement of the Consumer Credit Act 2025 (Act 873) and the establishment of the Consumer Credit Commission (CCC).
The legislation, gazetted on 31 December 2025, comes into force on 1 March 2026.
It is designed to regulate the consumer credit sector comprehensively, ensuring consistent, integrated and effective oversight of lending practices across the country.
Finance Minister II Datuk Seri Amir Hamzah Azizan described the initiative as a critical step in building a transparent and responsible credit system.
“This effort is an important measure by the Government to establish a transparent and accountable credit framework.
“With the enforcement of the Consumer Credit Act 2025 and the formation of the Consumer Credit Commission, the Government strengthens protection for consumers so that they are not exposed to unfair or unethical credit practices,” he said.
Under the new Act, all credit providers—including Buy Now Pay Later (BNPL) operators, leasing companies, and factoring firms—are required to obtain a licence from the CCC.
Similarly, credit service providers, such as debt collection agencies, impaired loan acquisition companies, and debt counselling and management agencies, must also register with the Commission.
Licensing and registration requirements will take effect on 1 June 2026.
A six-month transitional period has been provided for industry participants to apply for the necessary licences or registration under the Act.
The Ministry emphasised that these measures are intended to enhance consumer protection, improve governance within the credit industry, and ensure that lending practices are conducted in a transparent, fair, professional, and responsible manner.
The move signals Malaysia’s commitment to creating a safer, more accountable credit ecosystem, safeguarding consumers while promoting best practices across the financial sector. - March 2, 2026
